City Council - 10/20/2009 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP
& OPEN PODIUM
TUESDAY, OCTOBER 20, 2009 CITY CENTER
5:30—6:25 PM, HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad, and
Kathy Nelson
CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen,
Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and
Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric
Rosow, and Recorder Lorene McWaters
Heritage Room H
Council Member Nelson was absent
I. POINT OF SALE INSPECTIONS
Building Inspections Manager Kevin Schmieg and Fire Chief George Esbensen presented a
PowerPoint on point of sale inspections (also known as truth in housing) programs. Schmieg
said City staff's vision is to proactively develop property maintenance codes to decrease the
risk of blight and maintain property values. To date, the City has adopted a rental housing
inspections code and an exterior maintenance code. As a next step, staff is recommending
consideration of a point of sale inspection program.
Schmieg said the age at which buildings begin to rapidly deteriorate without proper
maintenance is 25 years. The average single family home in Eden Prairie is 24 years old.
Esbensen and Schmieg met with realtors from Edina Realty and Coldwell Banker to solicit
their ideas and opinions about a possible point of sale program. Schmieg said many of the
realtors said they see the potential value of such a program. Some expressed concern about
implementing a program in the midst of a distressed housing market. The realtors identified
Minneapolis, Bloomington, Golden Valley and Richfield as cities that have point of sale
inspection programs they like. Reasons the realtors liked these cities' programs included
web access and electronic accessibility of permit history and inspection information sheets.
Realtors said they would like to see a number of features included in any point of sale
inspection program:
• An appeals process
• Time frames for inspection certificate issuance
• Requirements for posting of inspection reports
• No delays due to the inspection process
• Requirements that banks comply with the process
• A cap on the value of repairs based on set percentage of property value
• Inspections completed before listing
• The ability to negotiate repairs between the buyer and seller
Schmieg said one reason to proceed with a point of sale code amendment despite the
distressed market is that distressed sellers are less likely to make necessary repairs before
putting a home on the market. He said the program would be fully funded through user fees.
Fees in other cities range from$75 to $250 per inspection.
Mayor Young said he does not believe implementing this program in the current economy is
a good idea. Duckstad said a smaller scale pilot program might be advisable at this time.
Young said he does not know how such a pilot program would be implemented. Esbensen
said that with the high level of distressed or short sales, the City has no way to intercede
once substandard properties are sold. Case said he is leaning toward favoring the program.
He said perhaps the program could be introduced in steps, with more lenient regulations
being implemented first.
Council Member Aho asked if the program would be staffed in-house and what kind of fees
would be required to cover the costs. Schmieg said he anticipates roughly 2,500 point of
sale inspections per year, which would require one full-time employee. The program could
pay for itself with a fee of around $50 per inspection. Because the city is experiencing
reduced building activity, Schmieg said the program could be implemented without adding
staff at this time.
Aho asked where the line is drawn on what is okay and what is not, in relation to ordering
improvements. Schmieg said the program would not cover internal aesthetics, such as
painting, etc. Rather it would address serious structural issues, including leaky roofs,
decking that is falling down, exposed wiring, etc.
Case said this type of program gets at what he considers government's number 1 priority:
The safety and protection of residents.
Council Chamber
II. CLOSED SESSION TO DISCUSS LITIGATION STRATEGY IN EMINENT
DOMAIN CASE ENTITLED CITY OF EDEN PRAIRIE VS. KC PROPCO, LLC, ET
AL (KINDERCARE)
III. ADJOURNMENT